Pakistan fuel crisis deepens as policy delays deepen supply concerns

Islamabad [Pakistan], July 16 (ANI): Pakistan is facing the risk of another fuel supply crisis as shrinking petrol reserves, delayed imports, and policy bottlenecks raise concerns over the country's energy security, as reported by The Express Tribune.
According to The Express Tribune, industry officials have warned that petrol inventories have fallen to nearly 379,000 tonnes, including supplies from local refineries, leaving enough stock for only about two weeks at the current rate of consumption. Demand has surged significantly during the first half of July, with daily petrol sales exceeding projections and last year's figures, driven by expectations of another increase in fuel prices. The rise in consumption has intensified pressure on already limited reserves, while delays in scheduled fuel imports have added to uncertainty.
Although shipments carrying around 153,000 tonnes of petrol are expected to arrive in the coming days, at least one planned cargo failed to receive approval last month, and another import involving multiple oil marketing companies was reportedly cancelled, further tightening supply. The situation has also been complicated by international shipping disruptions linked to tensions around the Strait of Hormuz and Bab el-Mandeb, which have pushed up global oil prices and freight costs. However, industry representatives argue that domestic administrative and financial challenges remain the primary factors worsening the crisis.
Oil marketing companies have urged the government to immediately release approximately Rs 66.7 billion in pending Price Differential Claims (PDCs), saying the delayed payments have weakened their ability to finance fresh fuel imports. Industry estimates suggest the outstanding amount could fund nearly 250,000 tonnes of petrol, equivalent to several import cargoes that would significantly strengthen national reserves, as cited by The Express Tribune.
Officials have also highlighted delays in customs clearance through the WeBOC system, warning that slow processing of imported fuel at ports could disrupt supplies to inland markets. While diesel stocks remain relatively stable due to continued refinery production, industry representatives cautioned that panic buying or hoarding could quickly create shortages if uncertainty persists, as reported by The Express Tribune. (ANI)